Now is the Time to Add Retirement Account to Social Security

Teresa GhilarducciBridget FisherZachary Knauss
Written By SCEPA

RELAB POLICY NOTE

DOWNLOAD PDF

(231 KB)

Despite billions in tax breaks to incentivize retirement savings, almost half of the American workforce does not have a retirement plan.

Guaranteed Retirement Accounts give every worker the opportunity to retire with dignity. Despite billions in tax breaks to incentivize retirement savings, almost half of the American workforce does not have a retirement plan. Without safe, effective accounts to save consistently for retirement, older workers face the increasing likelihood of experiencing downward mobility in retirement. Rather than relying on families and social spending to provide for the growing numbers of vulnerable seniors, we need comprehensive retirement reform to ensure retirement income security. This includes creation of Guaranteed Retirement Accounts (GRAs) added on to Social Security. A GRA is a mandated, professionally-managed retirement account – a hybrid between a defined benefit pension and a 401(k)-type defined contribution plan.

SCEPA
Previous

More Middle Class Workers Will Be Poor Retirees
Next

Worldly Philosopher: Meritocracy Builds Equality